RBI imposes monetary penalty on The Hongkong and Shanghai Banking Corporation Limited

Case Brief

The Reserve Bank of India imposed a monetary penalty of Rs 1,73,75,000 on The Hongkong and Shanghai Banking Corporation Limited by order dated May 02, 2023. RBI found that the bank had contravened Rule 20(1) of the Credit Information Companies Rules, 2006 by furnishing incorrect credit information in respect of a number of expired credit cards with nil dues to all four Credit Information Companies. The penalty was imposed under section 25(1)(iii) read with section 23(4) of the Credit Information Companies (Regulation) Act, 2005 after a show-cause notice, the bank’s reply, and oral submissions.